While shares of Archer-Daniels-Midland (ADM) have lost 12.8% over the past month due to a decline in interest from the hedge funds, the company reported impressive financial results in the first quarter and has been making several developments on the sustainability front. But is it a buy now? Read more to find out.Shares of food-processing giant Archer-Daniels-Midland Company (NYSE:ADM) have lost 12.8% over the past month to close yesterday’s trading session at $59.90, primarily due to a decrease in hedge fund sentiment lately. However, the company reported solid financial results in the first quarter driven by improved margins on the distribution of fuel ethanol and strong sales across various market segments, especially beverages.
The stock has gained nearly 24% over the past nine months, and 14.3% over the past six months. Earlier this year, ADM announced that it is moving onto the next phase of its strategic transformation, sharpening its focus on two key pillars — Productivity and Innovation — to enhance its capabilities to deliver outstanding execution, serve customer needs, and power growth and profitability. It also aims to eliminate deforestation from all of its supply chains by 2030. So, the stock looks well-positioned to generate steady returns in the upcoming months.
Here’s what I think could influence ADM’s performance in the near term: